Updated June 23, 2023
A debt settlement offer is a legal document that proposes a new arrangement to resolve a debt. Generally, the debtor sends this letter to suggest a one-time payment, which is less than the full amount owed, in exchange for the creditor forgiving the remaining balance.
After Signing
Once the letter is approved, the parties will create a debt settlement agreement, or in some cases, a receipt may be sufficient to confirm the debt has been settled.
Sample
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SETTLEMENT OFFER
[DEBTOR’S NAME]
[STREET ADDRESS]
[CITY, STATE, ZIP CODE]
[PHONE]
[E-MAIL]
Date: [DATE]
RE: OFFER FOR RELEASE OF CLAIMS
Dear [CREDITOR’S NAME],
1. CLAIMS. I, [DEBTOR’S NAME], am writing this letter regarding a financial claim made against me described as: [DESCRIBE THE DEBT].
2. OFFER. I am willing to make the following legally binding offer for a full and final release of any and all claims against me:
☐ – Single-Payment: [TEXT AMOUNT] Dollars ($[NUMERICAL AMOUNT]). Due to current financial hardships, this is all I can afford at this time.
☐ – Recurring Payments: [TEXT AMOUNT] Dollars ($[NUMERICAL AMOUNT]) paid on the [DAY] of every ☐ Week ☐ Month until the end date of [DATE].
3. CONTACT. If you should accept my offer, payment will commence and be made immediately. Feel free to contact me to further discuss this matter via the details below:
E-Mail: [E-MAIL]
Phone: [PHONE]
Address: [ADDRESS]
Sincerely,
_____________________